Alaska Municipal Bond Bank - i-Deal Prospectus - Home

132 Pages·2012·1.49 MB·English

s h PRELIMINARY OFFICIAL STATEMENT DATED FEBRUARY 22, 2012
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ntained herein are subject to coPreliminary Official Statement cgistration or qualification under t MBTaoBcfhooa qtennnhu Tdd2deihr s0a BeB 1etadao2 or2n r enbS0yk dyet1 Rha r2tBierhe eeaS dest newp e OBkrmleie onehndpnesetgt dyrBiOeo e-Bodsnnteon ae.fc”fndo ooBksrrn o taeudhnr no eedsdr esep eh rquarieue nrtraeshce l teoalguy ffeBa t anBelon erpond riandas ryd slaB msuota eaiebnsdbnlskil tguuy’ soa ens tfd2dei t0o ecuh0nrune 5srt d he pGoederfrei bn2 ntt0ychhe0 ieertp5ha a2B leG l0Bo po0enol5fned n aeGd dnrBgea dReanl neiaBenksnrotoa,de nllar udaOents sRdibsot ile ntgiosghn nooaem lntt uifh eouateninl o plt2 Bn af0oa.ro1f iiT 2nttayhh dlSl ew aeMR 2nrieiut0dehsn1 so c2io lcOr utSiehnptedieeaorir ltinB e BBo.sooof nO nntdhnddseess.
ment and the information cono circumstances shall this would be unlawful prior to re AoOtFhfOln eaAeR sTp lk BahTaasoeyH,k n ma2Eadne0 st2nd1o.0 t 2 t l1N hoeS2eefve iyStr2t hEiha0eeenR1s ry2 2I O E 0tfShon1Seere2 rOm ifBSeNa eosoiEt rfnOh i tdeB naassOex ndO aNdBotn Doi ceonnSr noedB.” tdsoo icrndto domnns onas. rkto i Tettt huhdaeteiner ytBe aa coaxntpnli ypndin,rg Bdoi npepadobnriwitkraee etdhcrinao tolsneyf s n fsotoo hrro e t crt a ohSoxnettiat nhpitgenae rgy p oemlofinwa eAtbnellyitral .ioos t kbfyS al teioh geifesa t“t2pheS0le Eet1 dhCS2ge tUSe aSRedtter IafiT oetoYesrf
cial Statem. Under n or sale OCanretT lBehdoegn 2ed0 s&1 2 aB rSreeo rooifekfsien rOgen doe fw BAhonencndh,s oa wrsa igallen b,d eA ilofa fsifskesraue, edBd to,h nsrduo buCjgoehcu tcn ostoem l.tp h eCet ietaripvtaepi rnso alvleeign oagln lm eFgaeatbtlr euorasp riwny ii2oll7n b, 2oe0 fp 1Wa2s.o s Thedlhf eou r2pt0ho1,n 2 Bf Soreer crtihhetes,
his Preliminary Offielivered in final foruch offer, solicitatio *GiYs oosPurvkreee,dr lNin mameniwnedan Yratyaov, lars kUiul banojbinetlc eobt rybto yai t cbsFho abausnottg n MeAd.a ucrtocouhmn 6as,te e2ld.0 I1 tS2 ie.sc euxriptieecst eTdr athnasfte trh efo 2r0 d1e2l Siveerriye st hOrnoeu gBho nthdes finac dileifitineist iovfe DfoTrCm iwn iNll ebwe
Tds
$18,660,000*
Alaska Municipal Bond Bank
General Obligation Bonds
2012 Series One

MATURITIES, AMOUNTS, INTEREST RATES, YIELDS AND CUSIP NUMBERS

CUSIP CUSIP
Interest Number(1) Interest Number(1)
Due December 1 Amounts* Rate Yield 01179P Due December 1 Amounts* Rate Yield 01179P
2012 2,310,000 2019 1,435,000
2013 2,430,000 2020 320,000
2014 2,565,000 2021 385,000
2015 2,690,000 2022 460,000
2016 2,165,000 2023 535,000
2017 1,170,000 2024 415,000
2018 1,290,000 2025 490,000

$__,___,___ % Term Bond due December 1, ___; Yield %
CUSIP Number 01179P ___

* Preliminary, subject to change.

(1) Copyright © 2012 CUSIP Global Services. CUSIP is a registered trademark of the American Bankers Association.
CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by Standard & Poor’s. These
numbers are not intended to create a database and do not serve in any way as a substitute for the CUSIP Service. CUSIP
numbers are provided for the convenience of reference only. CUSIP numbers are subject to change. The Bond Bank
takes no responsibility for the accuracy of such CUSIP numbers.
This Official Statement is furnished by the Bond Bank to provide information regarding the sale of the 2012 Series
One Bonds referred to herein and may not be reproduced or be used, in whole or in part, for any other purpose. The
delivery of this Official Statement does not imply that information herein is correct as of any time subsequent to the
date hereof. No dealer, salesman or any other person has been authorized by the Bond Bank to give any information
or to make any representation other than as contained in this Official Statement in connection with the offering
described herein and, if given or made, such other information or representation must not be relied upon as having
been authorized by the foregoing. This Official Statement does not constitute an offer of any securities other than
those described on the cover page or an offer to sell or a solicitation of an offer to buy in any jurisdiction in which it
is unlawful to make such an offer, solicitation, or sale.

The information and expressions of opinion set forth in this Official Statement have been furnished by the Bond
Bank and include information from other sources that the Bond Bank believes to be reliable. Neither this Official
Statement nor any statement which may have been made orally is to be construed as a contract with the owners of
any of the 2012 Series One Bonds.

UPON ISSUANCE, THE 2012 SERIES ONE BONDS WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND WILL NOT BE LISTED ON ANY STOCK OR OTHER
SECURITIES EXCHANGE. NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY
OTHER FEDERAL, STATE, OR OTHER GOVERNMENTAL ENTITY OR AGENCY, OTHER THAN
THE BOND BANK, WILL HAVE PASSED ON THE ACCURACY OR DETERMINED THE ADEQUACY
OF THIS OFFICIAL STATEMENT OR APPROVED THE 2012 SERIES ONE BONDS FOR SALE. THE
2005 GENERAL BOND RESOLUTION WILL NOT BE QUALIFIED UNDER THE TRUST INDENTURE
ACT OF 1939, AS AMENDED.

The remainder of this page has intentionally been left blank.
ALASKA MUNICIPAL BOND BANK
333 Willoughby Avenue, 11th Floor
P.O. Box 110405
Juneau, Alaska 99811-0405
[phone]
http://www.revenue.state.ak.us/treasury/ambba/

Board of Directors
Mark Pfeffer - Chair
Luke Welles - Vice Chair
Gregory Gursey - Member
Susan Bell - Member
(Ted Leonard - First Delegate to Susan Bell)
Bryan Butcher – Member
(Angela Rodell - First Delegate to Bryan Butcher)

Executive Director
Deven J. Mitchell

Bond Counsel
Wohlforth, Brecht, Cartledge & Brooking
Anchorage, Alaska

Trustee/Escrow Agent
The Bank of New York Mellon Trust Company, N.A.
Seattle, Washington

Financial Advisor
Western Financial Group, LLC
Lake Oswego, Oregon

The reference above to the Bond Bank’s website is contact information provided only for convenience. The
reference is not a hyperlink and, by this reference, the Bond Bank’s website is not incorporated into this Official
Statement.
TABLE OF CONTENTS
Page
Official Notice of Sale and Bidding Instructions .......................................................................................................... i
Introduction ................................................................................................................................................................. 1
Purpose of the 2012 Series One Bonds ........................................................................................................................ 1
Authorization and Purpose ................................................................................................................................... 1
Sources and Uses of Funds ................................................................................................................................... 2
Description of the 2012 Series One Bonds .................................................................................................................. 2
General Description .............................................................................................................................................. 2
2012 Series One Bonds ........................................................................................................................................ 2
Optional Redemption ............................................................................................................................................ 2
Mandatory Redemption ........................................................................................................................................ 3
Extraordinary Mandatory Redemption ............................................................................................................................ 3
Notice of Redemption ........................................................................................................................................... 3
Selection of 2012 Series One Bonds for Redemption .......................................................................................... 3
Security for the 2012 Series One Bonds ...................................................................................................................... 4
General ................................................................................................................................................................. 4
Pledge Effected by the 2005 General Bond Resolution........................................................................................ 4
Municipal Bonds .................................................................................................................................................. 5
2005 General Bond Resolution Reserve Fund ...................................................................................................... 5
State Payments ..................................................................................................................................................... 6
Pledge of the State ................................................................................................................................................ 6
The Alaska Municipal Bond Bank............................................................................................................................... 7
Organization ......................................................................................................................................................... 7
Board of Directors ................................................................................................................................................ 7
Management ......................................................................................................................................................... 8
Future Financing Plans ......................................................................................................................................... 8
Debt Payment Record ........................................................................................................................................... 9
Bonds Outstanding ...................................................................................................................................................... 9
1976 General Bond Resolution ............................................................................................................................. 9
2005 General Bond Resolution ............................................................................................................................. 9
2010 Municipal Obligation Bond Resolution ....................................................................................................... 9
Revenue Bond Resolutions ................................................................................................................................... 9
Coastal Energy Impact Program ........................................................................................................................... 9
Direct Loans ....................................................................................................................................................... 10
Total Bond Bank Bonds Issued and Outstanding as of February 1, 2012 ................................................................. 11
Remaining Debt Capacity After the Issuance of the 2012 Series One Bonds ........................................................... 11
Debt Service Requirements of Outstanding General Obligation Bonds and the 2012 Series One Bonds ................. 12
Summary of the 2005 General Bond Resolution ....................................................................................................... 13
2005 General Bond Resolution Constitutes Contract ......................................................................................... 13
Obligation of Bonds ........................................................................................................................................... 13
Pledge ................................................................................................................................................................. 13
Power to Issue Bonds and Make Pledges ........................................................................................................... 13
General ............................................................................................................................................................... 13
Waiver of Laws .................................................................................................................................................. 14
Loan Agreement Provisions ............................................................................................................................... 14
Modification of Loan Agreement Terms ............................................................................................................ 15
Enforcement of Municipal Bonds ....................................................................................................................... 15
Funds and Accounts ........................................................................................................................................... 15
Security for Deposits .......................................................................................................................................... 17
Payment of Bonds .............................................................................................................................................. 17
Fees and Charges ................................................................................................................................................ 17
Issuance of Additional Obligations Including for the Purpose of Refunding ..................................................... 17
Defeasance.......................................................................................................................................................... 18
Supplements and Amendments .......................................................................................................................... 18
Events of Default and Remedies ........................................................................................................................ 19
Excess Earnings .................................................................................................................................................. 20
Litigation ................................................................................................................................................................... 20
Certain Legal Matters ................................................................................................................................................ 21
Underwriting .............................................................................................................................................................. 21
Financial Advisor ...................................................................................................................................................... 21
Financial Statements .................................................................................................................................................. 21
Tax Matters ................................................................................................................................................................ 21
Ratings ....................................................................................................................................................................... 24
Continuing Disclosure Undertaking .......................................................................................................................... 24
Prior Compliance with Continuing Disclosure Undertakings Under the Rule ................................................... 25
Sources of Certain Information ................................................................................................................................. 25
Definitions ................................................................................................................................................................. 26
Miscellaneous ............................................................................................................................................................ 27
Preliminary Official Statement .................................................................................................................................. 28
Official Statement ...................................................................................................................................................... 28

APPENDIX A - Form of Legal Opinion
APPENDIX B - State Payments to Governmental Units
APPENDIX C - Government Unit Statistics Regarding Participation in the Bond Bank
APPENDIX D - Summaries of Borrowers Representing 10% or More of Outstanding Principal
APPENDIX E - Financial Statements of the Alaska Municipal Bond Bank for the Year Ended June 30, 2011
APPENDIX F - 2005 General Obligation Bond Resolution
APPENDIX G - DTC and Book-Entry System
OFFICIAL NOTICE OF SALE AND BIDDING INSTRUCTIONS
ALASKA MUNICIPAL BOND BANK
$18,660,000* GENERAL OBLIGATION BONDS
2012 SERIES ONE

THE SALE

Bonds Offered for Sale by Competitive Bidding. The Alaska Municipal Bond Bank (the "Bond Bank") is
offering for sale its $18,660,000* General Obligation Bonds, 2012 Series One (the "2012 Series One Bonds").

Manner of Submission of Bids. All bids for the 2012 Series One Bonds must be submitted in their entirety on
Parity ("Parity") pursuant to this Official Notice of Sale between 9:30 a.m. and 10:00 a.m. Pacific Time, on Monday,
February 27, 2012; no bid will be received after the time for receiving bids specified.

No other provider of electronic bidding services and no other means of delivery (i.e. telephone, telefax,
telegraph, personal delivery, etc) of bids will be accepted. If any provision of this Official Notice of Sale conflicts
with information provided by Parity, this Official Notice of Sale shall control.

For further information about submitting a bid using Parity, potential bidders may contact Chip Pierce,
Western Financial Group, LLC (the “Financial Advisor”) at Telephone: [phone] or Parity at Telephone:
[phone]. Bidders electing to submit bids through Parity must obtain access to the Parity system and bear all
risks associated with using that system, including errors and delays in receipt of bids.

By submitting a bid for the 2012 Series One Bonds, a prospective bidder represents and warrants to the
Bond Bank that such Bidder’s bid for the purchase of the 2012 Series One Bonds is submitted for and on behalf of
such prospective bidder by an officer or agent who is duly authorized to bind the prospective bidder to a legal, valid
and enforceable contract for the purchase of the 2012 Series One Bonds.

Award of the 2012 Series One Bonds. The Bond Bank will notify the responsible bidder complying with the
terms of this Official Notice of Sale and offering to purchase the 2012 Series One Bonds at the lowest true interest cost to
the Bond Bank of the award the 2012 Series One Bonds (or all bids will be rejected) by 2:00 p.m. Pacific Time on
Monday, February 27, 2012. Final award to the apparent winner (or rejection of all bids) will be made within 24 hours
of the bid opening.

Basis of Award. The 2012 Series One Bonds will be awarded to the bidder whose proposal produces the
lowest true interest cost. The true interest cost will be that annual interest rate, which, when compounded
semiannually and used to discount all payments of principal and interest payable on the 2012 Series One Bonds
under such proposal to the date of delivery, results in an amount equal to the purchase price for the 2012 Series One
Bonds. If two or more bids provide the same lowest true interest cost, the Bond Bank shall determine, based on the
highest premium stated in said bids, which bid shall be accepted, and such determination shall be final.

Right of Rejection. The Bond Bank reserves the right to reject any and all bids, to waive any irregularity or
informality in any bid, to take any actions adjourning or postponing the sale of the 2012 Series One Bonds or to take any
other action that the Bond Bank may deem to be in its best interest. In the event that the Bond Bank rejects all bids,
notice of a new sale date, if any, will be carried on the Amendments page of the Parity website.

* Preliminary, subject to change.
i
THE 2012 SERIES ONE BONDS

Bond Details. The 2012 Series One Bonds will be dated the date of delivery and will bear interest from their
dated date, payable on December 1, 2012, and semi-annually thereafter on June and December of each year. Interest will
be computed upon the basis of a 360-day year of twelve 30-day months. The 2012 Series One Bonds will mature on
December 1 in the years and in the principal amounts, as follows:

Principal Principal
Year Amount* Year Amount*
2012 2,310,000 2019 1,435,000
2013 2,430,000 2020 320,000
2014 2,565,000 2021 385,000
2015 2,690,000 2022 460,000
2016 2,165,000 2023 535,000
2017 1,170,000 2024 415,000
2018 1,290,000 2025 490,000

* - Preliminary, subject to change. See “Adjustment of Maturities.”

Adjustment of Maturities. The Bond Bank reserves the right to adjust the principal amount of each maturity as
may be necessary in order to produce level debt service on the underlying loans. The principal amount of any maturity of
the 2012 Series One Bonds shall only be adjusted in increments of $5,000. Notice of any adjustment shall be provided
within two hours of the time at which bids are opened through Parity. The Bond Bank will attempt to maintain the
underwriter compensation as a percentage of the final par amount of the bonds when adjusting the maturities. The
successful bidder may not withdraw its bid or change the interest rates bid or the initial reoffering prices as a result of
any changes made to the revised amounts within these limits.

Optional Designations of Term Bonds and Mandatory Sinking Fund Redemption. Bidders have the option of
specifying in their bid proposal that all of the principal amount of the 2012 Series One Bonds scheduled in any two or
more consecutive years may, in lieu of maturing in each such year, be combined to comprise one or more maturities of
the 2012 Series One Bonds (the “Term Bonds”) scheduled to mature in the latest year of each such combination. The
Term Bonds so specified by the bidder shall be subject to mandatory sinking fund redemption at par in the principal
amounts in each year during the combined period of such Term Bonds, which would otherwise have been scheduled to
mature in such years. If no Term Bonds are designated in the successful bid, the Bonds will mature serially without
Term Bonds.

Immobilization of the 2012 Series One Bonds. The 2012 Series One Bonds will be issued in fully registered
form in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC") as
registered owner of the 2012 Series One Bonds, and immobilized in the custody of DTC which will act as securities
depository for the 2012 Series One Bonds. A book-entry system will be employed by DTC evidencing ownership of the
2012 Series One Bonds in principal amounts of $5,000 or any integral multiple thereof, with transfers of beneficial
ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC.

Principal of and interest on the 2012 Series One Bonds will be payable at maturity to DTC or its nominee as
registered owner of the 2012 Series One Bonds. Transfer of principal and interest payments to participants of DTC will
be the responsibility of DTC. Transfer of principal and interest payments to beneficial owners by participants of DTC
will be the responsibility of such participants and persons acting through such participants (the "Participants"), and other
nominees of beneficial owners. The Bond Bank will not be responsible or liable for maintaining, supervising or
reviewing the records maintained by DTC, the payment by DTC or a Participant of principal of or interest on the 2012
Series One Bonds, any notice to bondholders or any consent given or other action taken by DTC as the registered owner
of the 2012 Series One Bonds.

ii
Optional Redemption. The 2012 Series One Bonds maturing on or after December 1, 2022, are subject to
redemption at the option of the Bond Bank in whole or in part on any date on or after June 1, 2022, at a price of 100% of
the principal amount thereof to be redeemed plus accrued interest to the date of redemption.

Extraordinary Mandatory Redemption. The 2012 Series One Bonds are subject to extraordinary mandatory
redemption at a price equal to the principal amount of such bonds called for redemption, plus accrued interest to the
redemption date and without premium in whole upon receipt by the Trustee of a notice of the occurrence of a
Determination of Taxability of the 2012 Series One Bonds. “Determination of Taxability” means any final
determination, decision or decree, all applicable appeals periods with respect to which shall have expired, made by
the Commissioner or any District Director of the Internal Revenue Service or by any court of competent jurisdiction,
that interest on the 2012 Series One Bonds or the Juneau Municipal Bonds is not excludable under Section 103(a) of
the Code from gross income of any owner of such bonds for regular federal income tax purposes.

Security for the 2012 Series One Bonds. The 2012 Series One Bonds are general obligations of the Bond Bank
payable only from revenues or funds of the Bond Bank. The Bond Bank has no taxing power. The State of Alaska is not
liable for payment on the 2012 Series One Bonds, and such 2012 Series One Bonds are not a debt of the State of Alaska.
Neither the faith and credit nor the taxing power of the State of Alaska is pledged for payment of the 2012 Series One
Bonds.

The security for the 2012 Series One Bonds is described in the Preliminary Official Statement and the 2005
General Bond Resolution and Series Resolution, and those documents should be consulted for a complete description of
the security for the 2012 Series One Bonds.

Bond Insurance At Bidder’s Option And Expense. Bidders may elect to insure the 2012 Series One Bonds
at the bidders’ risk and expense. The Trustee will only enter into agreements to comply with the administrative
requirements of the bond insurer; the Bond Bank will not amend the general bond resolution, series resolution
or the loan agreements. The Bond Bank will pay the fee for a rating from Moody’s Investors Service and Fitch
Ratings, regardless of whether the 2012 Series One Bonds are insured. Failure of a bond insurer to provide
insurance for the 2012 Series One Bonds will not release the successful bidder from its obligation to purchase the
2012 Series One Bonds. If the Bond Bank selects a bid that is based on providing insurance on the 2012 Series One
Bonds, then the Official Statement and other documents relating to the 2012 Series One Bonds will be amended
accordingly. However, no additional security beyond that described in the Preliminary Official Statement will be
allowed.

Interest Rates and Bid Price. The 2012 Series One Bonds will be sold in one block on an "all or none" basis,
and at a price of not less than one hundred percent (100%) of the principal amount of the 2012 Series One Bonds.
No serial or term bond maturity may bear a price of less than ninety-eight (98%). Bidders must specify the rate(s)
of interest to be borne by the 2012 Series One Bonds, provided that each rate bid must be a multiple of one-eighth (1/8)
of one percent (1%) or one-twentieth (1/20) of one percent (1%). The highest interest rate bid may not exceed 6.00%.
No limitation is imposed upon bidders as to the number of rates which may be used, except that all 2012 Series One
Bonds of one maturity must bear one and the same interest rate. The bidding is permitted either with or without
bond insurance at the discretion of the bidder. In either event, the winning bid will be selected on the basis of the
true interest cost to the Bond Bank, and in all cases the insurance premium will be paid by the bidder.

Good Faith Deposit. The successful bidder will be required to provide a good faith deposit in the amount of
One Hundred Eighty-Six Thousand Six Hundred Dollars ($186,600.00) in immediately available funds wired to
the Bond not later than 2:00 p.m. (Prevailing Pacific Time) on February 27, 2012. Wire information will be
provided to the successful bidder by the City or the Financial Advisor upon bid award.

The Good Faith Deposit will be held by the Bond Bank to ensure the successful bidder's compliance with the
terms of its bid and the Official Notice of Sale and Bidding Instructions, and will be applied to the purchase price on the
date of delivery of the 2012 Series One Bonds. Pending delivery of the 2012 Series One Bonds, the good faith deposit
may be invested for the sole benefit of the Bond Bank. In the event the successful bidder should fail or refuse to take up
and pay for the 2012 Series One Bonds in accordance with its bid, then said amount shall be accepted by the Bond Bank
as full and complete liquidated damages.

Postponement. The Bond Bank reserves the right to postpone the sale and to set a new time for the sale either
separately or at one time. Postponement may be effected by 8:00 a.m. Pacific Time on February 27, 2012 by a
Statement of Postponement carried on the Amendments page of Parity and on the Munifacts system (the “Statement of
iii
Postponement”). At the same time or within 48 hours following the Statement of Postponement the Bond Bank may
reset a new time for the sale. The reset sale notice may state different terms and conditions of sale and may refer to this
notice for any or all terms of sale. All bidders will be deemed to have assented to the above conditions by submitting a
bid, and lack of actual notice of the postponement or of the reset terms of sale will not be considered.

Delivery. It is expected that the 2012 Series One Bonds in definitive form will be issued and available by
Fast Automated Securities Transfer for delivery through the facilities of DTC in New York, New York on or about
March 6, 2012, and closing will take place on the same date in Seattle, Washington or at another location specified by
the Bond Bank. The successful bidder will be required to provide the Bond Bank by 12:00 p.m. (noon) Pacific Time on
February 27, 2012 with information as to the initial offering price of the 2012 Series One Bonds to the public (excluding
bond-houses and brokers) at which a substantial amount of the 2012 Series One Bonds were sold and the insurance
premium (if purchased by the bidder). Such information must be confirmed with a certificate, dated the date of closing
of the 2012 Series One Bonds, in form and substance satisfactory to Bond Counsel, showing that at least 10% of each
maturity of the 2012 Series One Bonds was sold, or were reasonably expected to be sold, to the public at initial
public offering prices not exceeding the prices of the 2012 Series One Bonds set forth in the initial statement of
such prices.

There will be furnished to the successful bidder without cost, the executed 2012 Series One Bonds to be
delivered to DTC or its agent and the usual closing documents dated as of the date of delivery of and payment for the
2012 Series One Bonds, including a certificate that there is no litigation pending or threatened affecting the validity of
the 2012 Series One Bonds.

The Bond Bank will confirm to the successful bidder, by a certificate signed on its behalf by the Executive
Director or Chair and delivered at the closing, that at the time of the acceptance of the bid, and at the time of the closing,
insofar as the Bond Bank and its affairs, including its financial affairs, are concerned, the Official Statement did not and
does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

Payment. The successful bidder shall make full payment of the purchase price of the 2012 Series One Bonds to
the Bond Bank at the time of delivery in Federal Funds or other immediately available funds without cost to the Bond
Bank.

Tax-Exempt Status. The opinion of Wohlforth, Brecht, Cartledge & Brooking of Anchorage, Alaska, will state
that, based on an analysis of existing statutes, regulations, published rulings and judicial decisions, and assuming, among
other things, compliance by the Bond Bank with its covenants relating to certain requirements contained in the Internal
Revenue Code of 1986, as amended (the "Code"), interest on the 2012 Series One Bonds is excludable from gross
income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative
minimum tax imposed on individuals and corporations. However, interest on the 2012 Series One Bonds is taken into
account in the computation of adjusted current earnings for purposes of the federal corporate alternative minimum tax.
For further information as to tax exemption, please refer to the Preliminary Official Statement.

Note: A portion of the 2012 Series One Bonds are private activity bonds which qualify as “Qualified
501(c)(3) Bonds under Section 145 of the Code.

Legal Opinion. The opinion of Wohlforth, Brecht, Cartledge & Brooking of Anchorage, Alaska, approving the
validity of the 2012 Series One Bonds, will be furnished upon delivery of the 2012 Series One Bonds.

CUSIP Numbers. CUSIP identification numbers will be printed on the 2012 Series One Bonds, but neither the
failure to print such number on any 2012 Series One Bonds nor any error with respect thereto shall constitute cause for
the successful bidder to fail or refuse to accept delivery of and pay for the 2012 Series One Bonds. No liability shall
attach to the Bond Bank or any officer or agent thereof, including any paying agent or registrar for the 2012 Series One
Bonds, by reason of such number or by reason of any inaccuracy, error, or omission with respect thereto.

Continuing Disclosure Undertaking. In order to assist bidders in complying with SEC Rule 15c2-12(b)(5), the
Bond Bank will undertake to provide certain annual financial information, and the Bond Bank will undertake to provide
notices of certain events with respect to the 2012 Series One Bonds. A description of these undertakings is set forth in
the Preliminary Official Statement and will be set forth in the final Official Statement.

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